MicroStrategy Capitalizes on Market Thaw, Acquires $347M Worth of Bitcoin

Software analytics firm MicroStrategy made a significant move on June 28, announcing the acquisition of 12,333 Bitcoin, valued at approximately $347 million. This purchase has bolstered MicroStrategy’s total Bitcoin balance to 152,333 BTC, worth $4.52 billion, with an average purchase price of $29,668 per coin.

The average purchase price aligns closely with the $28,136 price mentioned in the company’s recent announcement. The acquisition of these coins took place between April 27 and June 27. Notably, MicroStrategy partially funded this purchase by issuing new stock, as explained in their statement:

“On May 1, 2023, MicroStrategy entered into a Sales Agreement with Cowen and Company, LLC and Canaccord Genuity LLC, as sales agents, pursuant to which MicroStrategy may issue and sell shares of its class A common stock, par value $0.001 per share (‘Shares’), having an aggregate offering price of up to $625.0 million from time to time through the Agents.”

As of June 28, MicroStrategy has sold a total of 1,079,170 shares under this agreement, generating net proceeds of $337 million. In a previous report on April 5, it was revealed that MicroStrategy added 1,045 BTC (approximately $29.3 million) to its balance sheet. The company, under the leadership of Michael Saylor, has been a vocal proponent of Bitcoin and has spearheaded the corporate adoption of the world’s largest cryptocurrency as a strategic asset.

MicroStrategy has consistently been active in purchasing Bitcoin, utilizing both cash and stock financing strategies, even during bearish market conditions. In Q1 2023, the company reported its first profitable quarter since 2020, primarily driven by a one-time income tax benefit.

MicroStrategy’s latest significant Bitcoin acquisition reflects its ongoing commitment to building a substantial cryptocurrency portfolio, solidifying its position as a leading corporate advocate and investor in the digital asset space.

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